Home Buying in Oakland>Question Details

Honeytoast4u, Home Buyer in Oakland, CA

How long does it take for a short sale to get approved by bank of America?

Asked by Honeytoast4u, Oakland, CA Thu Aug 25, 2011

How long does it take for a short sale to get approved by bank of America

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If one has the luck of the Irish and draws a really good set up specialist and a really good negotiator, it may take less than 2 months. or 3 if you're fairly lucky. And then hope that the buyer sticks around. Because if the buyer backs out, the process starts all over again, in spite of what they say.

Figure on 3-4 months from the time the package is submitted to the bank
0 votes Thank Flag Link Mon Aug 29, 2011
No two short sales are alike. I had one with BofA that took 9 months. That was not all the bank’s fault because it was a complicated transaction and we had two buyers walk away in the middle of the transaction.

I have heard that BofA’s national average for closing a short sale is 4.5 months.

Short sales are always a challenge.
0 votes Thank Flag Link Sat Aug 27, 2011
Well, as you can see below, short sales are not short at all:) If it a short sale and BofA through the equator system and the first loan is a BofA loan, and there is no second loan, then you have the best chance of completing a short sale in a 30-45 day time from from submitting the offer.

Keep in mind, the process to submit an offer can take a week or longer since the listing agent has to be acknowledged by the bank in the system and they have to upload the offer. If they don't have all the required information, including the buyers date of birth and social security number ( which in a traditional sale they don't have), ,they have to ask the other agent, upload the information, and then give the bank 3-5 days to respond. All of these little things add up to more delays so if you are wanting to compete a short sale in a short time, the best thing you can do is make sure all parties are committed to making it happen and can turn around documents as quickly as possible since the banks process is slow to begin with.

That being said, we didn't cover the other issues, such as, is there really a hardship, is there insurance on the property, who are the investors making the decision, all which lead up to, is the bank really going to approve the short sale after all this work.

If you are in contract on a short sale best of luck to you. The success rate is a lot better than it used to be:)
0 votes Thank Flag Link Thu Aug 25, 2011
In my most recent experience with BOA it took about 4 weeks to get a counter offer and about 6 weeks to wrap everything up. They have certainly sped up their process with the use of Equator.

You should plan on a 75-90 days before closing because once you received the approval ~60 days, it will take your lender at least 21 days to process the loan for settlement.

Good luck,
0 votes Thank Flag Link Thu Aug 25, 2011
As mentioned before - you never know - it all depends on the negotiator both for the Seller and the negotiator at B of A. Generally you can expect no less than 60 days.
0 votes Thank Flag Link Thu Aug 25, 2011
My shortest took 6 weeks whereas the longest took 5 months, but average response time seems to be about 3-4 months. After that, it's a typical 30 day close unless there are issues.
0 votes Thank Flag Link Thu Aug 25, 2011
My last run-in with BofA took 9 months to get a rejection.
Remember that this is a Shortsale, not an REO.
You just have to be patient; We know for a fact that the person you want to talk to at BofA has several hundred FILES on her desk.
Please do not expect your Agent to call them every day, or even every week. It doesn't help, it actually hurts!

Good luck and may God bless
0 votes Thank Flag Link Thu Aug 25, 2011
My experience with B of A is that over all they are getting quicker. Depends a lot on who your assigned negotiator is. They use the equator system that does not allow for communication except through that system. That being said expect 45 days for approval maybe more maybe less maybe not at all!
Good luck
0 votes Thank Flag Link Thu Aug 25, 2011
There is no answer to this question that you can take to the bank
0 votes Thank Flag Link Thu Aug 25, 2011
My recent one with BofA went really quickly! It took between 4 and 6 weeks. They use the Equator system. The seller's negotiator needs to stay right on top of the tasks that are issued by the system to make it go quick.

The seller's agent or negotiator uploads the info into the system. Then they have to wait for the bank's processor/negotiator to assign the next task. The system has improved and the approvals seem to be coming along faster than before.

Waiting is the hard part. Check in with your agent once a week and ask for an update. Hang in there!

Dot Chance, Realtor®
Certified Distressed Property Expert – CDPE®
DRE License #01494182
Keller Williams Realty World Media Center

WHEN YOU THINK OF REAL ESTATE...Think DotChance.com! My business thrives from your referrals!
Web Reference: http://www.DotChance.com
0 votes Thank Flag Link Thu Aug 25, 2011
The last short sale I did with B of A, it took 65 days to get an approval from the bank. Once we had approval it took 35 days to close the deal.
0 votes Thank Flag Link Thu Aug 25, 2011
Anywhere from a few days to several months or.....not at all. It depends on circumstances.

0 votes Thank Flag Link Thu Aug 25, 2011
In my opinion, B of A is the slowest in the market to respond. Do not be surprised with waits up to 4-months.

Jack Gillis, M.B.A., J.D. │ Realtor®
Jack Gillis Realty Advisors
United Real Estate, Broker
5430 LBJ Freeway | Suite 280
Dallas, TX 75240
Cell: 214.718.4910
Email: Jack@JackGillisRealty.com
0 votes Thank Flag Link Thu Aug 25, 2011
Bank of America, in comparison, is actually moving pretty fast these days. That being said, don't be surprised if the approval takes 1 to 2 months.

Good Luck
0 votes Thank Flag Link Thu Aug 25, 2011
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